Cuestionario de personalidad

These reviews take into account the brief overview of Nigerian oil sector and NNPC export and import activities through upstream and downstream sub-sectors.

2.1.3.1 Brief Overview of Nigerian Oil Sector The key Legal and regulatory agencies are;

Ministry of Petroleum Resources

This is the government administrative arm that deals with policy formulation and provides the general direction to other agencies in the sector for the exploration and production of both oil and gas resources. It also oversees all other sectors including downstream, midstream and oil services.

Nigeria National Petroleum Corporation (NNPC)

NNPC is a statutory corporation through which the Federal Government of Nigeria (FGN) participates in the oil and gas industry. The NNPC‟s primary function is to oversee the regulation of the oil industry through her subsidiaries such as The National Petroleum Investment

Manage-ment Services (NAPIMS), with secondary responsibilities which include overseeing the development of upstream and downstream sectors. NAPIMS, a subsidiary of NNPC, supervises Federal Government of Nigeria‟s (FGN‟s) investments in the oil industry.

Department of Petroleum Resources (DPR)

The DPR is responsible for ensuring compliance with the terms governing the award of oil licenses to companies engaged in petroleum operations. Other functions include the following:

(i) Monitors the oil companies‟ operations to ensure consistency with international industry standards and practices.

(ii) Issues the annual permit (DPR Permit) to the companies, without which they would be unable to operate in the industry.

Nigerian Investment Promotion Commission (NIPC)

The NIPC is responsible for registering foreign investments in Nigeria including oil and gas industry. It also acts as a liaison between investors and government ministries, departments, institutional lenders and other institutions concerned with foreign investments.

Notable incentives in the NIPC Act include, but not limited to, the following:

(i) Enlargement of the modes of payment for foreign equity to include spare parts, raw materials and other business assets acquired without initial disbursement of foreign exchange from Nigeria. (ii) Guarantees foreign investors the unrestricted transferability of dividends or profits attributable to foreign investment in Nigeria and capital repatriation in the event of liquidation.

Dividend payments are subject to withholding tax at 10% as final tax.

Nigerian Content Development and Monitoring Board (NCDMB)

The major functions of the NCDMB are to implement the provisions of the Nigerian Oil and Gas Industry Content Development Act, 2010, with respect to supervising, coordinating, administering, monitoring and managing the development of Nigerian Content in the industry.

The NCDMB is also to assist local contractors and Nigerian companies to develop their capabilities and capacities.

The key areas of focus of the NCDMB are as follows: (a) Training and employment of Nigerians (b) Facilitate establishment of critical facilities such as pipe mills, docking and marine facilities, pipe coating facilities (c) Promoting indigenous ownership of marine vessels, offshore drilling rigs, etc (d) Integration of indigenes and businesses residing in oil producing areas into main-stream of industry economic activity (e) Promoting services which support industry activities such as banking, insurance, legal, etc.

Niger Delta Development Commission (NDDC)

The roles of the NDDC are to: (a) Formulate policies and guidelines for the development of the Niger-Delta area. (b) Conceive, plan and implement, in accordance with set rules and regulations, projects and programmes for the sustainable development of the Niger-Delta areas (c) Prepare master plans and schemes designed to promote the physical development of the Niger-Delta area and the estimates of the costs of implementing such master plans and schemes (d) Implement all the measures approved for the development of the Niger- Delta area by the FGN and the member states of the commission. (e) Identify factors inhibiting the development of the Niger-Delta area and assist the member states in the formulation and implementation of policies to ensure sound and efficient management of the resources of the Niger-Delta area. (f) Tackle ecological and environmental problems that arise from the exploration of oil mineral in the Niger-Delta area and advise the FGN and the member states on the prevention and control of oil spillages gas flaring and environmental pollution (Klynveld Peat Marwick Goerdeler [KPMG], 2014).

Upstream sector

The upstream sector is responsible for exploration of crude oil and its exportation from Nigeria to rest of the world. In international market, crude oil is the 9^th most traded product and the 1060^th most complex product according to the product complexity index (PCI) (KPMG, 2014).

Internationally, the upstream major trade partners cut across; North America, South America, Central America, Europe, Ocenia/Pacific countries, Asia and far East and African with North America as her largest market. From 2007 to 2017 the upstream sector exported crude oil amounting to the volume in barrel per day as indicated in figure 2.2.

Figure 2.2: The average volume of crude oil export from Nigeria to her major trade partners in crude oil from 1997-2017.

Source: NNPC Bulletin 2017.

Generally, the upstream sector from 1983 to 1989 has on average exported crude oil worth 400,412,849 barrels at average price of $24 per barrel. From 1997-2003 average crude export stood at 704,319,727 and increased to 786,017, 226 in 2011-2017 at average price of $29 per barrel and $95 per barrel respectively (NNPC, 2017).

On the other hand, crude oil export revenue flowing from upstream trade activities has been fluctuating. In 1983 crude oil export revenue stood about N7.9 billion and increased to N211.9 billion in 1992 which is about 2582.3% increase in ten years. In 1999 oil export revenue increased to about N1.2 trillion and further increased to 6.3 trillion in 2005 and 11.1 trillion in 2011 and dropped to 5.6 trillion in 2015 and 7.5 trillion in 2016. This indicate 427.4% growth rate between 1999 and 2005, and 76.9% growth rate between 2005 and 2011, and -49.6% growth rate between 2011 and 2015, and 33.3% growth rate between 2015 and 2016.

5,622,181,417

1,323,188,461

4,346,279,345

3,063,212,584

1,575,660,780

North America South America Europe Asia & Far East Africa

Figure 2.2: Summary of Nigerian crude oil export revenue growth rate from 1983 to 2017.

Source: National Bureau of Statistics NBS.

All the points below zero line in figure 2.3 above indicate negative crude oil export revenue growth rate, whereas all points on zero line indicate zero crude oil export revenue growth rate and all the points above zero indicate positive crude oil export revenue growth rate.

Further, from 1983 to 2017 international price of bonny light crude oil have witnessed negative growth rates in nine periods, for instance in 1998, 2009 and 2016 growth rate of bonny light crude oil stood at -31.43%, -33.56% and -47.45% respectively.

Figure 2.3: Summary of Growth Rate of International Price of bonny light crude oil from 1983 to 2017.

Source: NNPC Statistical Bulletin, 2017.

All points on zero line in figure 2.4 indicate zero crude oil export price growth rate and all points below zero line indicate negative crude oil export price growth rate while all the points above zero line indicate positive crude oil export price growth rate.

0 50 100 150

1980 1985 1990 1995 2000 2005 2010 2015 2020

Crude oil Export Revenue Growth Rate

ODFTOT

-200 0 200 400 600

1980 1985 1990 1995 2000 2005 2010 2015 2020